ISLAMABAD: The International Monetary Fund (IMF) has decided to present the findings of its unscheduled visit to Pakistan to its executive board for a decision, citing delays in the implementation of the $7 billion programme.
In an official statement at the conclusion of its five-day visit, the IMF stated, “Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.”
The challenges identified by the IMF indicate that the three-year Extended Fund Facility (EFF) encountered significant hurdles soon after it was approved by the board on September 25.
An IMF team led by Mission Chief Nathan Porter visited Pakistan from November 11 to 15 to evaluate the progress on around 40 conditions that the government had agreed to implement.
Through a press release, the IMF shared its “preliminary findings,” noting that a detailed report would be submitted to the Executive Board for further deliberation.
According to the mission chief, Pakistan and IMF staff “We agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases, while transferring greater social and development responsibilities to provinces.”
Sources revealed that the issues highlighted by Porter after the emergency visit reflect areas where Pakistan has fallen short of its commitments.
Press release stated that In addition, structural energy reforms and constructive efforts are critical to restore the sector’s viability, and Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector. Strong program implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis.
As part of the IMF’s requirements, a National Fiscal Pact was to be signed by the federal government and the four provinces by September 30. While the agreement was finalized, it excluded the transfer of the Benazir Income Support Programme (BISP) to the provinces, resulting in a scaled-down version of the pact.
The authorities’ reaffirmed commitment to the economic reforms supported by the 2024 Extended Fund Facility (EFF) is viewed with encouragement. The first EFF review mission is expected to be conducted in the first quarter of 2025.
